Yanlord

Yanlord: 2Q15 net profit jumped more than 11x to Rmb171.1m on revenue of Rmb2.3b (+55%). The strong topline was driven by larger GFA delivery and improved ASP achieved by the group, with major contributors being Yanlord Yangtze Riverbay Town in Nanjing, Yanlord Lakeview Bay in Suzhou and Yanlord Sunland Gardens in Shanghai.

Gross margin improved to 34.9% from 25.0%, due to a change in product mix for higher-margin projects, while bottom-line was further aided by a decline in admin expenses (-44%) and finance cost (-7%).

Meanwhile the group saw JV contributions of Rmb34.8m versus losses of Rmb1.9m from the previous year, largely as a result of contributions from the Sino-Singapore Nanjing Eco Hi-tech Island project, which is to be progressively completed in phases.

Going forward, the Group continues to witness steadfast buyer demand for its high-quality residential developments. As at 30 Jun ‘15, Yanlord has received advances for pre-sale properties
amounting to Rmb12.3b, with an accumulated pre-sale amount of Rmb18.1b.

Yanlord intends to launch new projects and new batches of its existing projects, which include:
1) Yanlord Riverbay (Phase 2) in Chengdu;
2) Oasis New Island Gardens (Phase2) in Nanjing;
3) Yanlord Eastern Gardens, Yanlord Sunland Gardens (Phase 2) and Yanlord Western Gardens in Shanghai;
4) Yanlord Marina Peninsula Gardens (Phase 1) in Zhuhai.

At the current price, Yanlord trades at 0.45x P/B and has a net gearing of 40%.